The micro-level foundation of marketing in a post-modern era Silvia Rita Sedita [email protected].

The micro-level foundation of marketing in a post-modern era

Silvia Rita [email protected]

Once upon a time…

• everyone lived in small communities where we all knew each other by name.

• Word-of-mouth would quickly spread about the deals at the local grocery store, and the whole community would soon know about service experiences that could make or break any local business.

• In those days, businesses depended on the community to spread the news about their honesty, integrity and workmanship because the local neighbourhood gossip was their only form of advertising.

from word-of-mouth

…today

• Today we live in a virtual world wide community with a vast array of word-of-mouth and networking tools such as Twitter and Facebook in which we have made a digital grapevine that stretches to the ends of the earth.

• But it’s no longer enough to just simply explain your brand, why the community should choose your business, and what makes you stand out from the crowd.

• It is now crucial that your business invests into building a loyal relationship with your customers before your competition snatches them out of your reach!

to word of mouse

Postmodernism

Macro

Micro

Individual

Cultures, generations, lifestyles, social classes

Associations, groups, tribes, corporations, gangs

Individuals, subjectivity, cognition, behaviours, motivations

Aggregated actors

Concrete actors

Single actor

Source: adapted from Cova et al. (2008), who elaborate on de Desjeux (1996)

“Today consumers are looking not only for products and services which

enable them to be freer, but also for products, services, employees and

physical surroundings which can link them to others, to a tribe.”

Cova and Cova (2002:600)

How and in what ways do communities create value?

Let’s learn from motorcycles…

• In the motorcycle industry, companies create competitive advantage not only based on technical product superiority, but also on their ability to interact with their customers and create deep customer relationships across the entire lifecycle of ownership.

• Motorcycles are a lifestyle-intensive product, so motorcycle companies need to foster a sense of community among their customers in addition to offering innovative product features.

Ducati motors: the origin

• In 1926 the Ducati family and other Bolognese investors founded the Società Radio Brevetti Ducati in Bologna. – Their aim was the production of industrial components for the

growing field of radio transmissions, based on Adriano Ducati's patents.

• In 1946, the Cucciolo appeared: the small auxiliary motor for bicycles destined to become the most famous in the world.– In a short time, the Cucciolo became a real miniature motorcycle.– Thank to the Cucciolo's success, and that of its descendants,

Ducati became an affirmed trademark in the mechanical sector.• 1952 saw the birth of the futuristic Cruiser 175 cc, with an

electric starter and automatic transmission.

The start of the Desmo age

• In 1967 Ducati decided to revolutionise its engines, introducing the Desmodromic system which, until then, had only been used on racing bike

Important changes• In 1983, Ducati was purchased by Claudio and Gianfranco Castiglioni

and became part of the Cagiva Group.• 1993 saw the launch of the Monster, a bike that is still Ducati's

biggest commercial success, followed in 1994 by the 916, the bike that rewrote the history of road motorcycles in the ‘90s

• Ducati was sold by Cagiva to the American investment fund Texas Pacific Group in September 1996. Federico Minoli (ex McKinsey) is the new CEO.

• The turnaround era culminated on March 24, 1999 with the listing of Ducati Motor Holding at the New York and Milan Stock Exchanges.

• 2007 has been an eventful year for Ducati, beginning with Gabriele Del Torchio becoming the new CEO in May, taking over Federico Minoli's former position.

Ducati tribe is a crucial driving force

• With Minoli, community management has become so central at Ducati that management has replaced the words “marketing” and “customer” with the words “community” and “fan.”

• Ducati considers the community of fans to be a major asset of the company and it strives to use the Internet to enhance the “fan experience.”

• Ducati involves its fans on a systematic basis to reinforce the places, the events, and the people that express the Ducati life style and Ducati’s desired brand image.

Source: Sawhney et al. (2005)

MARKETING MANAGER

TRIBE DIRECTOR

EVENTS CLUBS

Desmo Owners Club (DOC)Ducati WeekendsWorld Ducati Week

DUCATI STORES

DUCATI STUFF

FROM

TO

THE PILGRIMAGE

The factory as a place of worship

Make them talk!

Brand advocacy?

References

• Cova B., Giordano A., Pallera M. (2008) Marketing non-convenzionale, Milano, Il Sole24Ore.

• Cova, B., & Cova, V. (2002). Tribal marketing: the tribalisation of society and its impact on the conduct of marketing. European Journal of Marketing, 36(5/6), 595-620.

• Desjeux D. (1996) Scale of observation: a micro-sociological epistemiology of social science practice, Visual Sociology, 11(2), 45-55

• Sawhney, M., Verona, G., & Prandelli, E. (2005). Collaborating to create: The Internet as a platform for customer engagement in product innovation. Journal of interactive marketing, 19(4), 4-17.